Introduction to Personal Finance Vocabulary

Question	Answer
Consumers	A person or organization that uses a product or service.
Credit	The granting of a loan and the creation of debt; any form of deferred payment. Ex: Credit Cards, Loans, House Loans, Car loans, etc...
Debt	An obligation of repayment owned by one party (the debtor/borrower) to a second party (the creditor/lender); in most cases this includes repayment of the original amount plus interest.
Economy	A system by which goods and services are produced and distributed.
Financial Literacy	the knowledge and skillset necessary to be an informed consumer and manage finances effectively. Ex: Saving, budgeting, and dealing with taxes.
Interest	Is the fee paid by the borrower to the lender for the use of borrowed money. (Is the cost of using someone else's money.)
Loan	A debt evidenced by a note, which specifies the principal amount, interest rate, and date of repayment.
Personal Finance	all the decisions and activities of an individual or family regarding their money, including spending, saving, budgeting, etc...
Personal finance is 80% __________ and 20% ___________	Behavior Head knowledge

Resource summary

	Created by Kevin Head over 9 years ago